Reliance Industries Limited and Bharat Heavy Electricals Limited are in talks to form a JV for setting up solar fabrication units. While RIL is scouting for partners for setting up 2 fabrication units, BHEL is looking for a strategic partner to venture into equipment manufacturing for solar power.
Mr K Ravi Kumar CMD of BHEL said that "We have received a communication from the Prime Minister’s Office in this regard and may go in for a JV with Reliance Industries."
The proposed JV is likely to venture into manufacturing of other small and medium equipment for solar power apart from the solar photo voltaic cells. The JV would also look for small and mid sized acquisitions in the international market for solar power.
The partners in waiting have not finalized the financial and technical details for the proposed JV and would firm up the plans in the next couple of months. The JV company would be eligible for capital subsidies and tax concessions for the solar fab units, a cost of INR 11,631 crore. The solar unit is proposed to be set up at Jamnagar in Gujarat.
Source:
http://steelguru.com/news/index/2008/04/20/NDI1ODE%3D/RIL_may_form_JV_with_BHEL_for_solar_units.html
Saturday, April 19, 2008
Centre wants BHEL norms, local machines in power plants
The Centre will try to standardise power projects to ensure that only technologies proven in Indian conditions are used, Minister of State for Power and Commerce Jairam Ramesh said here today.
Hinting at a move against imports of entire plants, he said power projects with imported equipment are not proving viable. “We found that 20 per cent of the 78,000 mw capacity to be added during the 11th Plan period will have the main plant package imported from China. But the machinery from China already used in West Bengal’s Sagardighi and Durgapur has proved inefficient in operating with Indian coal, which has a high ash content,” he said.
The government-owned Bharat Heavy Electricals Ltd, which had a monopoly when imports were not allowed, has been unable to meet the demand for power plant equipment.
Last year, Union power minister Sushil Kumar Shinde had said Bhel had been asked to compete for new projects via open global tenders. This had opened the floodgates to Chinese manufacturers.
“BHEL has proved (itself) with 500 mw plant packages and we are insisting that the BHEL standard should be implemented in all Indian power projects,” Ramesh said.
He made clear that the government is not eager to put BHEL under the adverse competition.
While BHEL is increasing its equipment-making capacity from the current 10,000 mw to 15,000 mw by 2011, Larsen & Toubro is setting up a facility of 4000 mw capacity per annum at Hazira.
Alstom and Alsando are already negotiating with the government for boiler making units and the proposed joint venture of power utility NTPC Ltd and BHEL of 4000 mw capacity will be commissioned by 2012.
Ramesh said orders have already been placed for 71,000 mw, but given India’s long-term power demand projection, orders for 25,000-30,000 mw have to be placed every year. The new manufacturing units will be able to make timely delivery of these orders, he said.
Union power minister Sushil Kumar Shinde had earlier told The Indian Express that China has five or six companies meeting the annual capacity addition of nearly 60,000 mw and India needs to learn from the China experience and have more manufacturers to support its power programme.
source;
http://www.expressindia.com/latest-news/Centre-wants-BHEL-norms-local-machines-in-power-plants/298856/
Hinting at a move against imports of entire plants, he said power projects with imported equipment are not proving viable. “We found that 20 per cent of the 78,000 mw capacity to be added during the 11th Plan period will have the main plant package imported from China. But the machinery from China already used in West Bengal’s Sagardighi and Durgapur has proved inefficient in operating with Indian coal, which has a high ash content,” he said.
The government-owned Bharat Heavy Electricals Ltd, which had a monopoly when imports were not allowed, has been unable to meet the demand for power plant equipment.
Last year, Union power minister Sushil Kumar Shinde had said Bhel had been asked to compete for new projects via open global tenders. This had opened the floodgates to Chinese manufacturers.
“BHEL has proved (itself) with 500 mw plant packages and we are insisting that the BHEL standard should be implemented in all Indian power projects,” Ramesh said.
He made clear that the government is not eager to put BHEL under the adverse competition.
While BHEL is increasing its equipment-making capacity from the current 10,000 mw to 15,000 mw by 2011, Larsen & Toubro is setting up a facility of 4000 mw capacity per annum at Hazira.
Alstom and Alsando are already negotiating with the government for boiler making units and the proposed joint venture of power utility NTPC Ltd and BHEL of 4000 mw capacity will be commissioned by 2012.
Ramesh said orders have already been placed for 71,000 mw, but given India’s long-term power demand projection, orders for 25,000-30,000 mw have to be placed every year. The new manufacturing units will be able to make timely delivery of these orders, he said.
Union power minister Sushil Kumar Shinde had earlier told The Indian Express that China has five or six companies meeting the annual capacity addition of nearly 60,000 mw and India needs to learn from the China experience and have more manufacturers to support its power programme.
source;
http://www.expressindia.com/latest-news/Centre-wants-BHEL-norms-local-machines-in-power-plants/298856/
Thursday, April 17, 2008
Reverse Auctions at BHEL
BHEL has lot of good brains and many look forward to implement new technologies. The material procured runs into thousands of Crores of Rupees. And many innovative processes are used to reduce procurement cost as well as to use available inventory/resources.
BHEL has implemented many computerised systems and even implemented SAP in 2002/03
BHEL attempted Reverse Auctions way back in early 2000 ( 2004/05 -- I am not sure). It is a great way to apply pressure on suppliers to reduce the price online as they can see the status of their pricing. L1 ( lowest 1 ) or L5 ( Lowest 5) or so.
A good presentation is at
http://www.dgsnd.gov.in/Copy%20of%20REVERSE%20AUCTIONS-PPP.ppt
If you want more info, feel free to write to me at rameshb@vsnl.com
Ramesh
The Human Search Engine
All U Wanted
BHEL has implemented many computerised systems and even implemented SAP in 2002/03
BHEL attempted Reverse Auctions way back in early 2000 ( 2004/05 -- I am not sure). It is a great way to apply pressure on suppliers to reduce the price online as they can see the status of their pricing. L1 ( lowest 1 ) or L5 ( Lowest 5) or so.
A good presentation is at
http://www.dgsnd.gov.in/Copy%20of%20REVERSE%20AUCTIONS-PPP.ppt
If you want more info, feel free to write to me at rameshb@vsnl.com
Ramesh
The Human Search Engine
All U Wanted
BHEL may bag NTPC deals at set price
The power ministry has finally agreed to give power equipment manufacturer Bharat Heavy Electricals (BHEL) a few of NTPC’s supercritical 660mw and 800mw projects on a negotiated basis. This would ensure smooth transfer of technology for supercritical units between Alstom-Siemens and BHEL.
A formula has been worked out that would ensure both competitive bidding as well as an opportunity for BHEL to ensure an effective technology transfer. A cabinet proposal to this effect will be taken up for consideration soon.
Sources said the proposal seeks to give some NTPC projects to BHEL at a predetermined price. Of the proposed projects, some would be given out through competitive bidding. The lowest bid in these competitively bid projects would become the price that BHEL will have to pay for the projects that it is awarded on a negotiated basis. BHEL has maintained that it would require eight to 10 units to effect the technology transfer for the supercritical units.
This, power ministry officials said, would help ensure NTPC gets the best possible price while at the same time ensuring that the “nation gets the opportunity to acquire advanced technolgy to indigenise.” The change of heart, which comes close to two years of talks between two the PSUs, may have something to do with problems at NTPC’s Barh project.
BHEL has a technology transfer arrangement with Alstom and Siemens for the 800mw supercritical units. BHEL has asked that 8-10 units of NTPC’s projects which would use 800mw supercritical technology be awarded to it, so that technology transfer from Alstom and Siemens can take place. This would allow it to internalise and develop indigenous capacities to manufacture units with supercritical technology.
The power ministry views the issue of qualitative advancement in terms of technology upgrade to be a matter of great concern; however, it was unwilling to give the projects at a negotiated price. Even though the power ministry acknowledged that only NTPC was in a position to place orders for as many as eight units simultaneously, it was unwilling to do so. The ministry felt that BHEL was not competive enough when it came to price, as was evident in at least two international NTPC tenders—Sipat (1320 mw) and Barh (1980 mw).
NTPC had floated international tenders for supercritical 660mw unit rating for both Sipat and Barh. The BHEl-Alstom-Siemens consortium had lost out in these tenders as their prices were substantially higher. The ministry is worried that when it comes to the 800mw supercritical technology the consortium may not be competitive in its price as was the case in the Sipat and Barh international contract biddings.
Over talks that lasted for nearly two years, the price at which BHEL would provide the units became a stumbling block. The ministry insisted that they would like the 800mw technology to be transferred to the Indian manufacturing sector and that they understood BHEL’s attempt to secure order of six to eight units from NTPC over which it will acquire engineering and manufacturing capability. It was felt that it would be wrong if NTPC doesn’t seek to get the best price for the units, as it would affect the cost of power.
source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/BHEL_may_bag_NTPC_deals_at_set_price/articleshow/2958034.cms
A formula has been worked out that would ensure both competitive bidding as well as an opportunity for BHEL to ensure an effective technology transfer. A cabinet proposal to this effect will be taken up for consideration soon.
Sources said the proposal seeks to give some NTPC projects to BHEL at a predetermined price. Of the proposed projects, some would be given out through competitive bidding. The lowest bid in these competitively bid projects would become the price that BHEL will have to pay for the projects that it is awarded on a negotiated basis. BHEL has maintained that it would require eight to 10 units to effect the technology transfer for the supercritical units.
This, power ministry officials said, would help ensure NTPC gets the best possible price while at the same time ensuring that the “nation gets the opportunity to acquire advanced technolgy to indigenise.” The change of heart, which comes close to two years of talks between two the PSUs, may have something to do with problems at NTPC’s Barh project.
BHEL has a technology transfer arrangement with Alstom and Siemens for the 800mw supercritical units. BHEL has asked that 8-10 units of NTPC’s projects which would use 800mw supercritical technology be awarded to it, so that technology transfer from Alstom and Siemens can take place. This would allow it to internalise and develop indigenous capacities to manufacture units with supercritical technology.
The power ministry views the issue of qualitative advancement in terms of technology upgrade to be a matter of great concern; however, it was unwilling to give the projects at a negotiated price. Even though the power ministry acknowledged that only NTPC was in a position to place orders for as many as eight units simultaneously, it was unwilling to do so. The ministry felt that BHEL was not competive enough when it came to price, as was evident in at least two international NTPC tenders—Sipat (1320 mw) and Barh (1980 mw).
NTPC had floated international tenders for supercritical 660mw unit rating for both Sipat and Barh. The BHEl-Alstom-Siemens consortium had lost out in these tenders as their prices were substantially higher. The ministry is worried that when it comes to the 800mw supercritical technology the consortium may not be competitive in its price as was the case in the Sipat and Barh international contract biddings.
Over talks that lasted for nearly two years, the price at which BHEL would provide the units became a stumbling block. The ministry insisted that they would like the 800mw technology to be transferred to the Indian manufacturing sector and that they understood BHEL’s attempt to secure order of six to eight units from NTPC over which it will acquire engineering and manufacturing capability. It was felt that it would be wrong if NTPC doesn’t seek to get the best price for the units, as it would affect the cost of power.
source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/BHEL_may_bag_NTPC_deals_at_set_price/articleshow/2958034.cms
Wednesday, April 16, 2008
BHEL-led consortium may sell Rs 55k-cr equipment to NTPC
It’s being billed as one of the biggest stand-alone power equipment contracts in recent memory. NTPC is in talks with a Bhel-led consortium, also involving Alstom and Siemens, to buy boilers/turbines worth Rs 55,000 crore for its string of upcoming 600-mw and 800-mw units.
Significantly, NTPC will require Cabinet clearance as it proposes to award the contract on a negotiated basis and not the tendering route. The company’s top brass has already sounded out the Union Cabinet secretary and the power minister in this regard, sources in top government circles said. The Bhel-led consortium will supply boilers and turbines for NTPC’s power ventures that embrace super-critical thermal technology. Boilers and turbines form the core of a power station.
Though details are not known, the contract will involve procurement of boilers/turbines for some 10 to 12 odd upcoming NTPC projects. On receiving Cabinet clearance, NTPC plans to award the Bhel-led consortium the boiler/turbine package for the 650x2-mw Barh super critical project in Bihar. Alstom will supply boilers while Siemens will supply turbines.
Interestingly, construction at Barh is yet to begin even though the project was inaugurated three years ago.
At this stage, NTPC officials remain tight-lipped. The company’s spokesperson declined to comment on the issue. However, a source close to the development said: “Bhel along with Alstom and Siemens had approached NTPC some time ago for a bulk contract to supply boilers/turbines for units with capacities of at least 600 mw.
NTPC wanted a bulk contract since it doesn’t have the requisite super-critical technology for manufacturing equipment. But Bhel’s partners are ready to transfer the technology only if it can bag the bulk order.”
The source further said, “If the tendering process is adopted, Bhel’s partners will also not be ready to a transfer technology since there is no assurance of contracts even for a single project being awarded. Hence, instead of piecemeal contracts for super-critical projects being awarded to Bhel, it will be easier if it receives a large contract,” said an NTPC source.
ET could not get an official comment from either Bhel or any of the other consortium partners on the technology-transfer issue. Going forward, in its target to remain the largest generating utility of India, NTPC has decided to maintain or improve its share of India’s generating capacity. Towards this end, it has targeted to build an overall installed capacity of over 66,000 mw by 2017.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/BHEL-led_consortium_may_sell_Rs_55k-cr_equipment_to_NTPC/articleshow/2951733.cms
Significantly, NTPC will require Cabinet clearance as it proposes to award the contract on a negotiated basis and not the tendering route. The company’s top brass has already sounded out the Union Cabinet secretary and the power minister in this regard, sources in top government circles said. The Bhel-led consortium will supply boilers and turbines for NTPC’s power ventures that embrace super-critical thermal technology. Boilers and turbines form the core of a power station.
Though details are not known, the contract will involve procurement of boilers/turbines for some 10 to 12 odd upcoming NTPC projects. On receiving Cabinet clearance, NTPC plans to award the Bhel-led consortium the boiler/turbine package for the 650x2-mw Barh super critical project in Bihar. Alstom will supply boilers while Siemens will supply turbines.
Interestingly, construction at Barh is yet to begin even though the project was inaugurated three years ago.
At this stage, NTPC officials remain tight-lipped. The company’s spokesperson declined to comment on the issue. However, a source close to the development said: “Bhel along with Alstom and Siemens had approached NTPC some time ago for a bulk contract to supply boilers/turbines for units with capacities of at least 600 mw.
NTPC wanted a bulk contract since it doesn’t have the requisite super-critical technology for manufacturing equipment. But Bhel’s partners are ready to transfer the technology only if it can bag the bulk order.”
The source further said, “If the tendering process is adopted, Bhel’s partners will also not be ready to a transfer technology since there is no assurance of contracts even for a single project being awarded. Hence, instead of piecemeal contracts for super-critical projects being awarded to Bhel, it will be easier if it receives a large contract,” said an NTPC source.
ET could not get an official comment from either Bhel or any of the other consortium partners on the technology-transfer issue. Going forward, in its target to remain the largest generating utility of India, NTPC has decided to maintain or improve its share of India’s generating capacity. Towards this end, it has targeted to build an overall installed capacity of over 66,000 mw by 2017.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/BHEL-led_consortium_may_sell_Rs_55k-cr_equipment_to_NTPC/articleshow/2951733.cms
Friday, April 11, 2008
BHEL Ranipet eyes INR 2,000 crore turnover in 2008-09
Bharat Heavy Electricals Limited’s Ranipet unit has projected a turnover of INR 2,000 crore during the current financial year 2008-09.
Mr AV Krishnan GM in charge of the boiler auxiliary’s plant of BHEL said that it had been logging 30% growth and was targeting a profit before tax of INR 300 crore in 2008. The Ranipet unit has undertaken an INR 117.42 crore modernizations and expansion, which would be completed by December 2009.
Mr Krishnan said that Ranipet’s operations reported an all time high turnover of INR 1,415.25 crore in the year 2007-08 up by 13% YoY, while profit before tax was at INR 208.14 crore. The order book stood at INR 4,658 crore, which includes orders worth INR 2,939 crore bagged during the year.
Post modernization, BHEL’s installed capacity would increase to 15,000 MW from 10,000 MW now. It currently has about 300 sub contractors.
source:
http://steelguru.com/news/index/2008/04/11/NDE3Mjg%3D/BHEL_Ranipet_eyes_INR_2%25252C000_crore_turnover_in_2008-09.html
Mr AV Krishnan GM in charge of the boiler auxiliary’s plant of BHEL said that it had been logging 30% growth and was targeting a profit before tax of INR 300 crore in 2008. The Ranipet unit has undertaken an INR 117.42 crore modernizations and expansion, which would be completed by December 2009.
Mr Krishnan said that Ranipet’s operations reported an all time high turnover of INR 1,415.25 crore in the year 2007-08 up by 13% YoY, while profit before tax was at INR 208.14 crore. The order book stood at INR 4,658 crore, which includes orders worth INR 2,939 crore bagged during the year.
Post modernization, BHEL’s installed capacity would increase to 15,000 MW from 10,000 MW now. It currently has about 300 sub contractors.
source:
http://steelguru.com/news/index/2008/04/11/NDE3Mjg%3D/BHEL_Ranipet_eyes_INR_2%25252C000_crore_turnover_in_2008-09.html
Wednesday, April 9, 2008
BHEL-PSSR targets Rs. 1,700 cr. turnover in 2011-12
BHEL-PSSR (Power Sector- Southern Region) has set its eyes on scaling the Rs. 1,700-crore turnover-mark by 2011-12.
Indicating this at a press conference here, P. R. Shriram, General Manager-in charge, said that BHEL-PSSR posted a turnover of Rs. 675 crore during 2007-08, up from Rs. 603 crore in the previous year. The overall turnover of BHEL for 2007-08 was Rs. 21,608 crore.
The move to aggressively explore international markets for EPC (engineering, procurement and construction) jobs and the proposal to get into EPC work in nuclear power plant (700 MW size) business were all aimed at driving up the sales number, he said. Thirty-five projects were now under execution by the company. The huge orders under execution, 12,080 MW to be precise, would also help boost the turnover considerably, he said. BHEL-PSSR was also gearing up to equip itself to execute super critical thermal sets. Consequently, it was planning to widen the base of its sub-contractors, he added.
Making a power-point presentation, he said BHEL-PSSR reported a profit before tax of Rs. 104.27 crore during 2007-08, up from Rs. 109.10 crore.
New orders
During the year under review, it received fresh orders worth Rs. 889 crore and added 1,575 MW to the Southern grid.
Mr. Shriram said BHEL-PSSR was participating in setting up a 125 MW integrated gasification combined cycle technology. This, he said, would usher in clean coal technology through in-house efforts along with other units of BHEL. As part of its green initiatives, BHRL-PSSR had decided to clean pipes through steam blowing instead of detergents, he added.
source:
http://www.hindu.com/2008/04/10/stories/2008041053821800.htm
Indicating this at a press conference here, P. R. Shriram, General Manager-in charge, said that BHEL-PSSR posted a turnover of Rs. 675 crore during 2007-08, up from Rs. 603 crore in the previous year. The overall turnover of BHEL for 2007-08 was Rs. 21,608 crore.
The move to aggressively explore international markets for EPC (engineering, procurement and construction) jobs and the proposal to get into EPC work in nuclear power plant (700 MW size) business were all aimed at driving up the sales number, he said. Thirty-five projects were now under execution by the company. The huge orders under execution, 12,080 MW to be precise, would also help boost the turnover considerably, he said. BHEL-PSSR was also gearing up to equip itself to execute super critical thermal sets. Consequently, it was planning to widen the base of its sub-contractors, he added.
Making a power-point presentation, he said BHEL-PSSR reported a profit before tax of Rs. 104.27 crore during 2007-08, up from Rs. 109.10 crore.
New orders
During the year under review, it received fresh orders worth Rs. 889 crore and added 1,575 MW to the Southern grid.
Mr. Shriram said BHEL-PSSR was participating in setting up a 125 MW integrated gasification combined cycle technology. This, he said, would usher in clean coal technology through in-house efforts along with other units of BHEL. As part of its green initiatives, BHRL-PSSR had decided to clean pipes through steam blowing instead of detergents, he added.
source:
http://www.hindu.com/2008/04/10/stories/2008041053821800.htm
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